Latest poll shows business owners’ outlook for jobs, sales on the rise Confidence is climbing

AN outlook for improved sales and employment has seen confidence among business owners and managers come surging back in Townsville, according to a survey.

The PVW Partners’ June quarter Townsville Business Confidence Index has returned a near record score of 111 points. PVW managing partner Carl Valentine said the result had only been bettered once in the index’s 27- year history, the June quarter of 2007 near the peak of a sharemarket and property boom.

But he warned the latest results were volatile and followed a March quarter result when confidence plummeted following the re- election of the Labor State Government.

The survey is done quarterly and is based on responses from about 300 business owners and managers in Townsville. Mr Valentine said most business people were looking to improved sales and employment flowing from infrastructure projects such as the stadium and Haughton pipeline.

“While it’s encouraging to see business confidence building, the relatively extreme volatility in the index over the past 12 months serves to demonstrate how fragile that confidence can be,” Mr Valentine said. “Recent press indicates a general increase in the level of economic activity in the Townsville economy but the volatility in the index suggests business owners and managers are working very much on a quarter- to- quarter basis.

“It remains to be seen if a longer- term trend of sustained business confidence will emerge.”

Mr Valentine said smaller businesses with a turnover of less than $ 10 million could be the “champions of employment” in the June quarter.

Of those, 28 per cent ex- pected to increase jobs, while 78 per cent believed their staffing levels would be maintained.

On larger businesses, 30 per cent expected to increase employment, 60 per cent believed it would be maintained and 20 per cent thought they would reduce staffing.

On sales, larger companies were more buoyant with 70 per cent expecting to increase revenues, while 48 per cent of small businesses anticipated sales to increase, 4 per cent ex- pected a decrease and 48 per cent believed sales would be maintained.

Mr Valentine said sustainable employment was critical to growth across the economy.

The survey also asked businesses about the impact of corporate tax cuts.

About 70 per cent of respondents agreed that lowering the company tax rate would be beneficial for the economy, 19 per cent were undecided and 11 per cent did not see a benefit.